14 Property Taxes/Liens/Environmental Flashcards
Encumbrance
A charge, claim or liability against a property. Liens, easements, deed restrictions or encroachments could lessen the value or use of a property.
Lien
A charge or claim against a property as security for a debt or obligation. Can be voluntary or involuntary. A specific lien attaches to one property and a general lien attaches to all your properties. To be effective they need to be recorded at the county.
Lien Facts
Property Taxes are always paid first.
Most liens are paid in the order in which they are recorded.
Liens run with the land and binds all successive owners.
Subordination
The changing of the lien order or where a junior lien holder agrees to stay in a lower position.
Wrongful Liens
An intentional, fraudulent lien put on a property. The penalty is $5,000 or three times the actual damages plus attorney fees. Unintentional wrongful lien is $1,000 or triple damages after 20 days notice to remove.
Real Property Taxes
Real property taxes are based on the assessed value of the property. AD VALOREM
AD VALOREM
At assessed value.
Real Property Taxes are
Specific Statutory Superior Involuntary Unrecorded
Special Assessments
Improvements performed on your property such as installing street lights, putting in sewers, sidewalks. Special assessments would be second in line behind property taxes.
Arizona Property Tax Foreclosure
16% interest Tax foreclosure sale every February Winning bidder receives certificate of purchase 3 years redemption period Treasurers deed
Other Liens
Mortgage liens Deed of trust liens Mechanics liens IRS liens Judgement liens
Non Recourse State
If you default on a mortgage, the lenders only option is to take the property back. They cannot go after anything else.
Mechanics Lien
A statutory lien created in favor of contractors, laborers, and materialmen who performed work or furnished materials in connection with the erection or repair of a building or structure.
20 day preliminary notice when work starts. Without it you can’t file.
120 days - notice of lien must be recorded. Includes 20 day waiting period after notice of completion.
6 months - from when the lien is recorded, you have 6 mos to file lawsuit. No filing in 6 months lien can disappear.
Mortgage and Deed of Trust Liens
Creates a lien on the property when a lender makes a loan. Both specific and voluntary.
IRS Liens
Involuntary, statutory and general liens that result from a person not paying their taxes. Take priority the date of recording.
Judgement Liens
Statutory, involuntary, and general lien on real and personal property created as a result of a lawsuit. Enforced via writ of execution and the ultimate sale of the property.
Asbestos
Banned in 1978. Highly friable. Encapsulation is preferred over removal.
Lead based Paint
Banned in 1978. Not mandatory for homeowners to test for presence.
Radon Gas
Naturally occurring colorless, odorless gas produced from the decay of natural radioactive minerals in the ground found in basements and cracks in foundations. Known to cause lung cancer.
Mold
Moisture and oxygen give you mold.
Electromagnetic Fields
EMF’s are energy fields found near power lines, homes near appliances, and in offices near equipment that has electric motors.
Groundwater Contamination
Below earths surface and can be contaminated from underground storage tanks, septic, storm drains, other sources. Can effect private wells and public water supply.
Landfills
Used as disposal sites for garbage. When full the cap 2-4 feet of soil on top and plant vegetation.
Superfund Amendments and Reauthorization Act
SARA. Act amended CIRCLA in 1986 to define cleanup standards and expand liability for cleanup. Also created the innocent landowner immunity act.
